Local bourses remain buoyant in early noon deals

The benchmark equity indices continued to trade higher in early noon session, on sustained buying by participants, with Sensex rising over 280 points and Nifty comfortably sailing near the crucial 10800 mark. The strength in the markets was being supported by the private report stating that credit growth of the scheduled commercial banks (SCBs) improved across all bank groups between March and September 2018. Credit extended by all SCBs grew 13.1 per cent at the end of September 2018, while that by private sector banks (PSBs) grew at a robust 22.5 per cent. Some support also came in with Federation of Indian Chambers of Commerce and Industry’s (FICCI) president Sandip Somany’s statement that agricultural reforms, interest rate cut and credit availability to micro, small and medium enterprises will drive India’s economic growth to 7.5% in 2019-20. Meanwhile, domestic institutional investors bought equities to the tune of Rs 240.60 crore, while FIIs sold shares a worth Rs 157.72 crore Friday, according to provisional data.

On the global front, Asian markets were trading in green, as Asian shares sped ahead on Monday as a dovish turn by the Federal Reserve and startlingly strong US jobs data soothed some of the market’s worst fears about the global outlook. Back on street, Banking stocks were in spotlight as Public sector banks are in the process of closing or rationalizing about 69 overseas operations in the next few months as part of their capital conservation exercise. Planned rationalization of operations and examination of a total of 216 overseas operations of the public sector banks (PSBs) was undertaken last year. Following the review, as many as overseas operations were closed while 69 are under process or being considered for rationalization. 

The BSE Sensex is currently trading at 35984.08, up by 288.98 points or 0.81% after trading in a range of 35895.78 and 36076.95. There were 28 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.43%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Realty up by 2.49%, Consumer Durables up by 1.47%, Power up by 0.99%, Telecom up by 0.97% and Basic Materials was up by 0.90%, while Healthcare was down by 0.02% was the only losing index on BSE.

The top gainers on the Sensex were Tata Motors up by 3.75%, Tata Motors - DVR up by 3.55%, Axis Bank up by 2.65%, Indusind Bank up by 2.07% and Maruti Suzuki was up by 1.51%. On the flip side, Bajaj Auto down by 0.97%, Kotak Mahindra Bank down by 0.12% and Hero MotoCorp was down by 0.09% were the top losers.

Meanwhile, the Cabinet is likely to consider the 'Asset Monetisation Framework', being drafted by the Department of Investment and Public Asset Management (DIPAM), this month. A framework will help the administrative ministries to fast track hiving off and sale of non-core assets of central public sector enterprises (CPSEs) under their administrative control.

To begin with, the guidelines would be applicable for those CPSEs which are likely candidates for strategic disinvestment. However, any state-owned company which wants to sell its non-core assets too can follow the framework. The framework, among other things, would stipulate the quantum of funds that would accrue to the CPSES following the sale of assets and how much would go into the exchequer. The government had already given in-principle approval for strategic sale of 24 state-owned companies.

DIPAM, after consulting ministries and CPSEs, has already identified huge tract of land and other assets of 9 state-owned companies which will be hived off before they are put on the block for strategic sale. The sale process of these assets has to be taken forward by the concerned administrative ministries. For the current fiscal, the government expects to raise Rs 80,000 crore from strategic as well as minority stake sales in public sector enterprises. So far this fiscal, the government has raised Rs 34,142 crore through PSU share sale.

The CNX Nifty is currently trading at 10812.85, up by 85.50 points or 0.80% after trading in a range of 10782.05 and 10835.95. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 3.66%, Axis Bank up by 2.75%, Indusind Bank up by 2.13%, Titan up by 2.08% and Grasim Industries was up by 1.79%. On the flip side, Bajaj Auto down by 0.90%, Indiabulls Housing down by 0.87%, Zee Entertainment down by 0.81%, Dr. Reddys Lab down by 0.70% and Indian Oil Corporation was down by 0.30% were the top losers.

All Asian markets were trading in green, Hang Seng increased 194.74 points or 0.76% to 25,820.77, Shanghai Composite gained 10.59 points or 0.42% to 2,525.46, Jakarta Composite soared 49.35 points or 0.79% to 6,323.89, Straits Times advanced 37.42 points or 1.22% to 3,096.65, KOSPI rose 27.22 points or 1.35% to 2,037.47, Taiwan Weighted strengthened 207.79 points or 2.21% to 9,590.30 and Nikkei 225 was up by 508.70 points or 2.6% to 20,070.66.